Beyond family holidays and New Year’s resolutions, many Americans are anticipating the upcoming inauguration and wondering how the regime change will impact them personally.
Here are some basic ways the new administration may impact household finance:
The Democratic cohort have been pushing for COVID-19 relief – largely in the form of the HEROES Act – since the rollout of the initial CARES act relief. To gain bipartisan support, the next round of relief will likely need to be more conservative than the most recent estimated $2.2 trillion price tag. According to Forbes Advisor, key incoming administration considerations include unemployment aid, improvements to the Paycheck Protection Plan, state and local funding, and direct stimulus payments to Americans.
The USA Today says the incoming administration plans to reduce the burden of student loan debts with targeted repayment programs, improvements to the Public Service Loan Forgiveness Program, and explore new debt forgiveness initiatives for those who commit to public service. We may also see the Pell Grant double and options for free community college and similar training programs for students with household income less than $125,000.
The rumored tax increases under a Democratic presidency are mostly set to impact large corporations and individuals whose annual income exceeds $400,000. The average American family will likely see tax relief, potentially including an increased Child Tax Credit for the duration of the COVID crisis, credits for childcare and caregiving, and the reintroduction of the first-time homebuyer tax credit.
Perhaps the best news of all is that we’ll likely see the election cycle stalemate ended around important issues like COVID relief and funds will start flowing to the families and small businesses who need it most. Keep making smart, conservative financial decisions for your household and, as always, feel free to reach out with questions or concerns. I care and I’m always happy to help!
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